Updated June 2026
Income Tax Calculator
Find out if you're overpaying tax. Compare old vs new regime for FY 2026-27 with the latest Income Tax Act, 2025 slabs — takes 30 seconds.
₹
Tax Regime
Age
Take Home
Tax + Cess
Total Tax (New Regime)
₹0
Monthly Tax
₹0
Effective Rate
0%
Annual Take-Home
₹12.00 L
Monthly Take-Home
₹1.00 L
Deductions Applied
₹75,000
Regime Comparison
New Regime
₹0
Old Regime
₹1.01 L
You save ₹1.01 L with the New regime
Slab-Wise Breakdown
₹0.0L - ₹4.0L (0%)₹0
₹4.0L - ₹8.0L (5%)₹20,000
₹8.0L - ₹12.0L (10%)₹32,500
Section 87A Rebate−₹52,500
Cess (4%)₹0
Income Tax Slabs FY 2026-27
New Tax Regime (FY 2026-27)
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
New Regime vs Old Regime — When to Choose What
The new regime wins when you have few deductions (no home loan, no HRA, minimal 80C). The old regime wins when your total deductions are substantial. Under the Income Tax Act, 2025 (effective April 2026), the new regime continues to be attractive:
- Income up to ₹12.75L: New regime = zero tax (₹12L rebate + ₹75K standard deduction)
- Income ₹13-20L: Old regime better only if deductions exceed ~₹4-5L
- Income ₹20L+: Old regime better if deductions exceed ~₹5.5-6L
What Changed in FY 2026-27
- Income Tax Act, 2025: Replaces the 1961 Act from April 1, 2026 — simplified structure
- "Tax Year": Replaces "Assessment Year / Previous Year" terminology
- Slabs unchanged: Same 7 slabs as FY 2025-26 (Budget 2026 made no rate changes)
- Effective tax-free income: Up to ₹12.75L under new regime (unchanged)
Section 87A Rebate Explained
This is the most misunderstood provision. If your taxable income (not gross income) is up to ₹12 lakh under new regime (or ₹5 lakh under old), your entire tax is rebated — meaning zero tax. But this is a cliff, not a gradient: at ₹12,00,001 taxable income, you pay full tax on all slabs.
Under new regime: Gross salary up to ₹12,75,000 (₹12L + ₹75K standard deduction) = zero tax.
How to Use This Calculator
- Enter your gross annual salary (CTC or total income before deductions)
- Choose New or Old regime — the calculator shows both simultaneously for comparison
- For Old regime, enter your actual deductions (80C, 80D, HRA, home loan, NPS)
- See which regime results in lower tax and how much you save
Frequently Asked Questions
What is the new tax regime for FY 2026-27?
Under the Income Tax Act, 2025 (effective April 1, 2026), the new regime has seven slabs: 0-4L: nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, above 24L: 30%. Standard deduction of ₹75,000. No other deductions like 80C, 80D, or HRA. Slabs are unchanged from FY 2025-26.
Which is better — old or new tax regime?
The new regime is better if your total deductions under old regime are less than ~₹3.75 lakh (at 12L income) to ~₹5.25 lakh (at 20L income). If you have HRA + 80C + 80D + NPS + home loan interest exceeding these thresholds, old regime saves more tax.
What is Section 87A rebate?
Under Section 87A, if your taxable income is up to ₹12 lakh (new regime) or ₹5 lakh (old regime), you get a full rebate — meaning zero tax. This effectively makes income up to ₹12.75 lakh tax-free under new regime (after standard deduction).
What deductions are available under old regime?
Key deductions: 80C (₹1.5L — EPF, PPF, ELSS, life insurance), 80D (₹25K-₹1L — health insurance), 80CCD(1B) (₹50K — NPS), Section 24 (₹2L — home loan interest), HRA exemption, standard deduction ₹50K, and professional tax.
Can I switch between old and new regime every year?
Yes, salaried employees can switch between regimes every financial year. However, individuals with business income can switch only once in their lifetime. You can inform your employer about your choice at the start of the year for TDS calculation.
How is cess calculated?
Health & Education Cess at 4% is applied on the total income tax amount (after rebate but before cess). For example, if your income tax is ₹1,00,000, cess = ₹4,000, total = ₹1,04,000. Cess cannot be claimed as deduction anywhere.
What is the standard deduction for FY 2026-27?
Standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime. It is a flat deduction from salary income — no proof or investment required. Unchanged from previous year.
Is income up to ₹12 lakh really tax-free?
Under the new regime, if your taxable income (after ₹75K standard deduction) is up to ₹12 lakh, Section 87A rebate makes tax zero. So gross salary up to ₹12.75 lakh is effectively tax-free. But if you exceed ₹12L even by ₹1, the entire income is taxed normally.